Xiabuxiabu shutters stores, cuts prices in bid to stop flow of red ink
Portfolio Pulse from The Bamboo Works
Xiabuxiabu is facing significant financial challenges, including a forecasted loss of up to 280 million yuan for the first half of the year. The company is responding by cutting prices, introducing value combos, and closing underperforming stores. The broader restaurant industry in China is also struggling due to weak consumer spending and intense competition, leading to a wave of profit warnings and business closures. McDonald's is also participating in the price war with its own value-oriented meal deals.

August 12, 2024 | 4:26 pm
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McDonald's is participating in the price war in China's restaurant industry by introducing value-oriented meal deals, such as the '1+1 DIY combos' and hamburgers costing just 10 yuan.
McDonald's introduction of value-oriented meal deals in China is likely to attract cost-conscious consumers, potentially boosting short-term sales and market share in a highly competitive environment.
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